Scotland business

Private rents tumble in Edinburgh

Lettings boards
Image caption Home sellers who cannot sell or are unhappy with the valuation of their property are letting their houses

Failed home sellers in Edinburgh have driven down the value of rents in the capital, according to the letting agents DJ Alexander.

These "reluctant landlords" are being forced to let out their homes because they cannot sell.

The average monthly rent in the capital fell from £813 in the final three months of 2011 to £796 in the first three months of 2012.

However, rents in Glasgow rose from £702 to £764 over the same period.

Rob Trotter, DJ Alexander's senior property manager in Edinburgh, said: "Because property values have taken a hit, few investment flats are being taken off the rental market to be sold.

"This is compounded by an increase in new properties arriving on the rental market due to what are known as 'reluctant landlords' - in other words, owner-occupiers who want to sell but who are unhappy with the valuation on their homes and so decide to let them out instead.

"Although demand for rented property is as buoyant as ever, the supply situation means that tenants are now in a slightly stronger position to negotiate on levels of rent."

The company said prospective tenants were now viewing more properties before making up their choice because of the increase in homes to let.

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